Amid the cascading credit crisis, the U.S. currency has reclaimed its status as the world's haven in tumultuous times. With investors rushing to sell everything and shove the proceeds into dollars, the greenback has gained more than 11% against the euro in October alone. Since the spring, when the mortgage crisis picked up speed, the dollar has gained some 22% against the euro. It has also strengthened against the British pound, the Swiss franc, the Australian dollar and others, though it's weaker against the Japanese yen.

This reversal halts, at least temporarily, a longstanding bearish trend that had seen the greenback slide against major world currencies for much of this decade. Today's newfound strength has consequences for investors, consumers and travelers. A more robust dollar weakens the benefit of investing abroad, yet makes imports, commodities and even an overseas vacation more affordable.

We haven't really seen anything like what is happening before. The contagion factor was seen in the Asian crisis but aside from that element, this particular problem is a new conundrum.

The global financial system will weather this storm and likely without a deflationary cycle.

It helps to remind yourself of what devastation really looks like.

Currently, am reading the Seige of Leningrad which presents the picture of a city of 3 million people trying to survive an iron blockade with dwindling food supplies, no power, no electricity, no telephone service, and endless bombardment slowly starving to death in Nov. 1941 as rations are cut to the level that will not sustain life.

It is well to remember what people in the 20th century have managed to survive. Not to say that the present circumstances are not difficult but to put them in perspective.

This is not life and death. Very difficult perhaps, but not life and death.